Compute deposit and money multiplier and give details.
Use the provided information to answer the problems below:
Required Reserve Ratio: rr= 0.2
Currency Deposit Ratio: c= 0.5
Excess Reserve Ratio: e=0.15
1- Illustrate what is the simple deposit multiplier?
2-Illustrate what is the money multiplier?
3- describe why the money multiplier differs from the simple deposit multiplier.